Wee Hur Holdings, the BCA Grade A1 builder and property developer, reports a 9% increase in net profit to shareholders to $14.4 million in 3Q2010 from $13.2 million in 3Q2009.

Due to new major construction projects being in their early stage of work in progress and hence lower recognition of revenue, group revenue decreased by 40% to $97.1 million in 3Q2010; whereas in 3Q2009, most of the projects were already in their matured stage of work in progress and hence allowed higher revenue recognition.

The group’s new property development business however contributed to the revenue; Villas@Gilstead contributed $25.7 million to the group’s income in 3Q2010. The income from the group’s property development business improves its gross margin from 13.1% from 3Q2009 to 19.5% in 3Q2010. Consequently, the decrease in gross profit was limited to 10% from $21.1 million in 3Q2009 to $18.9 million in 3Q2010.

Current assets were higher as at 30 September 2010 due mainly to the expansion of the Group’s new property development business. Development property stood at $84.2 million as at 30 September 2010 comprises land and construction costs in Villas@Gilstead books; and other subsidiaries namely Wee Hur (Woodlands), Wee Hur (Paya Lebar) and Wee Hur (Kaki Bukit).

Net cash from operating activities doubled from $6.3 million in 3Q2009 to $12.5 million in 3Q2010. Proceeds from the exercise of 16,014,507 warrants also brought in $17.8 million. Repayment of borrowings, dividend paid and movement in cash at bank pledged however brought a net decrease in cash of $3.0 million in 3Q2010. Nonetheless, the group maintained a healthy cash and bank balances totalling $38.7 million as at end 30 September 2010.